Faced with a revenue shortfall, Railway Minister Mallikarjun Kharge will not bring about
reduction in basic passenger fares in the interim budget tomorrow but is likely to make adjustment in fuel adjustment component so that impact on fares is minimum in an election year.

Kharge is likely to announce more trains, new lines and better passenger amenities in the interim budget.

Railway Ministry sources said it will be a growth-oriented budget and not a deficit one despite fall in
earnings.

Freight and passenger earnings have shown a decline during the April-December 2013 period. While freight earnings are short by about Rs. 850 cr, the decrease in passenger revenue is about Rs. 4000 cr.

Though the then Railway Minister Lalu Prasad had announced a two per cent fare cut in passenger segment in the interim budget of 2009, Kharge is unlikely to do so now given the dismal financial scenario.

However, Kharge is likely to announce measures for better amenities and safety for passengers while at the same time undertaking steps to improve the fiscal position.

The announcement of running 20 premier trains on dynamic fares as a step to arrest the fall in passenger revenue is likely to be made.

In a bid to give passengers relief from the impending fare hike in April due to implementation of fuel adjustment component (FAC), Kharge is also likely to make some adjustment in FAC so that impact on passenger fares is minimum.

The interim rail budget will also focus on electrification of more routes so that dependence on diesel is less.

Railways are likely to take up about 1500 km route for electrification in the next fiscal. Currently, only about 24,000 km is electrified out of the total 65,000 km route.

In his first budget presentation, Kharge will talk about the progress and development work undertaken by the national transporter in the last ten years.

Since Lok Sabha elections are around the corner, there are demands from many zones and MPs for new trains and Kharge has conceded to some demands. As a result, survey of new lines, extension and increase of frequency of certain train services are also to be announced in the vote-on-account
statement.

The vote-on-account is likely to mention the expeditious work on coaching complex for maintenance facility at Gulberga.

On the mega project front, Kharge will mention the speedy work on dedicated freight corridor and work sanction on the 66 km long Mughalsarai and Sonnagar link as part of the project.

Kharge has expressed serious concern over falling revenue and categorically asked officials to undertake all possible steps to arrest the further fall in earnings in the recent General Managers meeting.

The minister is also likely to address the issue of fire mishaps in trains in the recent past by rolling out plans for anti-fire measures in certain important trains.

Besides, he is expected to focus on more passenger-friendly measures like installation of upgraded
real-time train information system at stations and operation of automatic ticket vending machines at many stations.

The Railway Minister is likely to refrain from announcing any populist measures given the financial condition of the national transporter.

While the working expenses have gone up by about Rs. 5,000 crore during April-December period, the revenue earnings have decreased by over Rs. 4,000 crore.

Though Railways have set a target of reaching 38 per cent of total cargo traffic in the 12th Plan, the cargo share of railways is expected to fall by two to three per cent this year.

New Delhi: Presenting the Interim Rail Budget 2014 in Parliament on Wednesday, Union Railway Minister Mallikarjun Kharge announced that 73 new trains would be introduced.

The Railway Minister has however kept both the passenger as well as the freight fares unchanged.

Meanwhile, the Railway Budget presentation was cut short as Parliament was adjourned till 2pm due to interruptions caused by MPs protesting creation of Telangana. Four Union ministers from Seemandhra had stormed into well of the House along with other members over Telangana.

The MPs had initially also stalled presentation of the Rail Budget to highlight their cause.

Anticipating healthier economic growth, the Railways has targeted a record Rs 1.6 lakh crore in revenue for the next financial year, while no increase has been proposed in passenger fares and freight rates.

"The Budget Estimates for goods, passenger, other coaching and sundry other earnings have been kept at Rs 1,05,770 crore, Rs 45,255 crore, Rs 4,200 crore and Rs 5,500 crore, respectively, in 2014-15," Railways Minister Mallikarjun Kharge said in the Lok Sabha while unveiling the Interim Rail Budget.

In the current financial year, earnings from freight and passenger services are estimated at Rs 1,31,500 crore.

No increase in passenger fares and freight rates has been proposed in the Interim Rail Budget for 2014-15.

According to the budget document, the Annual Plan for 2014-15 envisages investments of Rs 64,305 crore. The Budget Estimate for 2013-14 was Rs 63,363 crore and the Revised Estimate was Rs 59,359 crore.

Budgetary support from general revenue has been proposed at Rs 30,223 crore, it said.

"Anticipating a healthier growth of economy, the freight traffic target is proposed at 1,101 million tonnes, an increment of 49.7 million tonnes over the current year's revised target of about 1,052 million tonnes," the budget document said.

"Extra Budgetary Resources, including market borrowings through IRFC, 'PPP' and other schemes, has been pegged at Rs 19,805 crore," Railways Minister Mallikarjun Kharge said in his proposals while presenting the Interim Rail Budget.

"While efforts of the government to provide precious financial resources for growth of Indian Railways would undoubtedly continue, the phenomenal investment needs of rail infrastructure cannot be met entirely through Gross Budgetary Support, Internal Generation of Railways and Market Borrowing.

"Railways have therefore started targeting private investment in rail infrastructure to bridge the gap," he said.

KOLKATA: Making the most of the opportunity before him, junior railway minister Adhir Chowdhury managed to squeeze out some manna for Bengal in the railway budget presented by senior colleague Mallikarjun Kharge on Wednesday.

Despite the limitations posed by his position as a junior minister and the fact that Kharge's budget couldn't have been a full-fledged one given the limited life of the UPA II government, Congress' Murshidabad strongman got Bengal 11 new trains and two new rail tracks.

Kolkata and Malda got better connectivity to almost all Metros and IT hubs, but Bengal didn't get any big projects. The sole consolation is the doubling of two lines â€” one between Panskura-Shyamchak (third line) and the other on the 15-km stretch between Diamond Harbour and Magrahat.

Among the 17 "premium" AC trains announced in Kharge's budget, four will orginate from Bengal while a fifth will pass through it. Bengal's gains include five new trains to four metros â€” Mumbai, Bangalore (Yeshwantpur), Anand Vihar (Delhi) and Pune â€” and one to Jodhpur. The train to Anand Vihar will originate at Malda, thus fulfilling a long-standing demand since the area has just one express train, Farakka Express.

However, all railway projects announced in the budgets presented in 2009, 2010 and 2011, except the diesel component unit in Dankuni, are in a limbo. The Dankuni unit has become functional this fiscal.

Accusing the UPA government of making false promises, CM Mamata Banerjee wrote in her post on a social networking site that she was "astonished and perturbed" to see how the Union government had announced 72 new trains when it has stopped disbursing funds even for the 100 days' work scheme. Fresh announcements, introductions and commitments are being made which will become a huge burden on the new government that will take charge in a few months' time, she said.

"In his budget speech, the railway minister mentions introduction of Railway Budget for 2014-15. It is totally misleading and a gimmick to make false promises by an outgoing government in a vote-on-account budget where the purpose is only to seek permission of the Parliament for incurring expenditure for the coming four months. It is against the Constitutional norms and absolutely unethical," she wrote.

Trinamool Congress national general secretary Mukul Roy said: "Bengal has witnessed three railway budgets in 2009, 2010 and 2011. The people know what Mamata Banerjee as a railway minister did for Bengal. She had ushered in a revolution of sorts here. The Metro expansion, East-West Metro corridor, expansion of railway tracks, factories and collaborations all bear testimony to it. People can see what they've gained now".

There are at least six projects in Bengal which did not find any mention in the last two budgets â€” the rail components manufacturing units at New Jalpaiguri, Kulti and Jellinghum, the Metro coach factory in Singur, centre of excellence in software in Darjeeling, rail industrial park in Jellinghum and another project in Uluberia.

An official of Burn Standard, which was to execute the Jellinghum project, told TOI that nothing has happened there. Texmaco executive vice chairman Ramesh Maheshwari said thought the railways is expected to be a major propellant of economic growth, the implementation of various projects continues to be tardy due to various constraints. Texmaco is one of the largest railway wagon makers in the country. "As far as wagon industry is concerned, it is in the doldrums," he added.

Adhir countered: "We cannot resolve all problems in one or two years because we don't have any magic wand".

Titagarh Wagons vice chairman Umesh Chowdhary defended the budget and said that the minister has rightly refrained from succumbing to the political compulsions of an election year. He cited Kharge's admission during his speech that he was flooded with requests to set up new factories but refrained from doing so. "From the industry perspective, this is very important since most of the railway related industries are suffering from over capacity and lack of orders, and announcing new factories for similar products now would have amounted to gross national wastage," he added.

Passengers proceeding to Tirupati can now do so in the comfort of a double-decker what with the interim Railway Budget 2014-15 providing for a bi-weekly express service from Kacheguda. Also, another bi-weekly double-decker express was announced between Guntur and Kacheguda, apart from a daily Hyderabad-Gulbarga Intercity Express.

In all 15 of the 55 new Express trains announced in the Railway Budget pertain to South Central Railway (SCR), constituting 28 per cent. Of the 15 trains, eight either originate or pass through the twin cities. Interestingly, while it is for the first time double-decker express service was announced for SCR, both of those announced in the Budget were allocated to SCR.

The Budget had announced frequency increase for three express trains and all three belong to SCR. They are Vijayawada-Hubli, Bidar-Yeshwanthpur and Secunderabad-Hubli, with all of them that have been made daily services from thrice a week. In addition, surveys for doubling of two single line sections - Latur Road to Kurdwadi and Parbahni to Parli, on SCR jurisdiction, were also included in the Budget.

A statement circulated by Shri Ram Naik, BJP leader and former Minister of State for Railways (Independent Charge) in a Press Conference held at Mumbai on 15th February, 2014

Interim Railway Budget violates Rules and Conventions: Ram Naik

Mumbai, Tuesday: "Lok Sabha witnessed an unprecedented chaos by four Ministers when they did not allow Railway Minister Shri Mallikarjun Kharge to present his interim budget - vote on account. Added to that the Railway Minister also committed a serious blunder by violating parliamentary rules and conventions in his speech", criticized Shri Ram Naik, former Minister of State for Railways (Independent Charge) and BJP leader in a press conference held today at Mumbai.

Shri Naik while briefing on procedure of vote on account said,"Instead of complete budget; vote on account is presented when General Elections are at the doorsteps. The Parliament's sanction is obtained for the expenses of 2-4 months of the next financial year vide vote on account. As per rules no new services or projects are included in the vote on account. However, the Railway Minister has clearly flaunted these parliamentary rules and conventions. Since prior sanction of the cabinet is obtained before presenting vote on account in the parliament; not only the Railway Minister but the Prime Minister Dr. Manmohan Singh and his entire cabinet is responsible for this deliberate breach", criticized Shri Naik. "Shri Subhash Kashyap, former General Secretary of Lok Sabha and the imminent expert on the parliamentary proceedings and rules has also endorsed my opinion", informed Shri Naik.

"Under the title 'New Services' 17 premium trains, 38 express trains, 10 passenger trains, 7 Memu-Demu trains and 6 extendent trains are included in this vote on account alongwith surveys for 19 new lines and 5 double lines. These announcements not only violate the rules but are meant for appeasement as General Elections are at the doorsteps", criticized Shri Naik.

"As per parliamentary cenvention, vote on account speech includes review of presious year's budget. While the paragraph of Metropolitan Railway which include Mumbai Suburban Railway system is totally missing, there is no indication of the projects like Churchgate-Virar elevated corridor under thePublic-Private Partnership (PPP) through which the then Railway Minister has said that he expected investment of Rs. one lakh crore. Moreover, in the previous budget the then Minister has said that a proposal for Rail Tariff Authority has been formulated and is at inter-ministerial consultation stage; while this speech says the Rail Tarif Authority is being set up to advise the government on fixing fares and freights. There is no indication as to why it could not be established during the year", added Shri Naik.

Chief Minister Shri Prithviraj Chavan and Dy Chief Minister Shri Ajit Pawar have also joined the Railway Minister in misleading the people. In their response to vote on account speech of the Railway Minister, both of them have said that the Railway Minister has approved Pune Metro. However, the word 'Pune Metro' can not be found in the full speech of the Railway Minister. "This is a cheap attempt to hoodwink the people in view of coming Lok Sabha election", commented Shri Naik at the end.

The Interim Railway Budget for the next fiscal was passed by the Lok Sabha on Monday with practically no discussion as members from Andhra Pradesh and West Bengal picketed the Well of the House with their respective demands.

Only three members including Leader of the Opposition Sushma Swaraj and Samajwadi Party leader Mulayam Singh Yadav managed to get in a word as Speaker Meira Kumar decided to cut short the debate in view of the chorus of protest in the Well by Congress members from Andhra Pradesh and Trinamool Congress members from West Bengal.

Though some of those in the Well including three ministers from Andhra Pradesh had been there from the time the House was convened for the day for the presentation of the Interim Budget, their decibel level rose when the Railway Budget was taken up for discussion.

One of them even stood inside the Secretary Generalâ€™s enclosure as the Railway Budget was passed with Minister of State for Railways Kotla Jaya Surya Prakash Reddy stood in the Well with other members from Andhra Pradesh protesting against the move to bifurcate the State.